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Service tax

Govindaraj (GST Consultant ) (100 Points)

06 August 2013

Dear Sirs,

Pls clarify whether service tax is applicable - if I do job work.

Thanks & Regards,

P.Govindaraj

+91 95 97 97 57 57

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5 Replies

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 06 August 2013

As per Notification No.25/2012-ST,hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:- 30. Carrying out an intermediate production process as job work in relation to -

(a) agriculture, printing or textile processing;

(b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);

(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year.

Pradeep Kamath (Chartered Accountant) (134 Points)
Replied 06 August 2013

There can be two scenarios:

1. Any process amounting to manufacture or production of goods: This is covered under the negative list (Section 66D(f)). As per Section 65B (40) - "process amounting to manufacture or production of goods" means a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 (1 of 1944.) or any process amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force;

2. Other process: are generally chargeable to service tax, except exempt otherwise (like the one mentioned above by Mr.Raghavender).

If you provide the details of the specific job work to you are wanting an answer, we can check on that.

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 06 August 2013

thanks for correcting me Pradeep kamath ji.

Govindaraj (GST Consultant ) (100 Points)
Replied 06 August 2013

Thanks Gentlemans.

Am doing yarn doubling work for spinning mills. Doubling is a intermediate process from cotton to yarn..

Please clarify am applicable to service tax

Thanks & Regards,

P.Govindaraj

+91 95 97 97 57 57

Pradeep Kamath (Chartered Accountant) (134 Points)
Replied 06 August 2013

Intermediate production process as job work in relation to textile processing is covered under Sl.No.30 of Notification 25/2012, therefore this should be exempt.